How can you exceed the credit limit

Credit limits for customers

  • 7 minutes to read

Important

Dynamics 365 for Finance and Operations has evolved into purpose-built applications that you can use to manage certain business functions. For more information about these changes, see the Dynamics 365 Licensing Guide.

When setting a credit limit, you can specify the maximum amount of credit that will be given to customers. If a credit limit has been specified, it is automatically checked when a user tries to update a document. If the credit limit is exceeded, a message will be displayed to the user. This topic provides an overview of how credit limits work in and answers the following questions:

  • For which documents and processes can I check credit limits?

  • Where do I configure the method by which the customer's remaining credit is calculated?

  • Where is information about a customer's remaining credit used?

  • Where do I specify whether identification is required in order for a credit to be granted to a customer and also the amount of credit that requires identification?

  • Where do I indicate if I see a warning or an error when the credit limit is exceeded?

  • How do I specify the credit limit for a specific customer?

  • How do I manually check credit limits for orders?

For which documents and processes can I check credit limits?

Use the form Accounts receivable parametersto indicate which documents check credit limits. You must be a member of the System Administrator (-SYSADMIN-) security role to make the changes on this form. You can check credit limits for the following documents and processes:

  • Invoices for orders when you post the invoices

  • Delivery notes for orders when you update delivery notes

  • Orders when you have positions in the form Sales orders Add

  • Orders when they are created through a service

  • Free text invoices when you create the invoices

Credit limits are automatically checked when one of the following options is set:

  • Through the Type of credit settings in the form Accounts receivable parameters determines whether this field is required or on No can be set. Credit limits are checked for all customers.

  • in the Accounts receivable parameters Form becomes the field Credit limit type on No fixed, but the Credit limit required for a customer in the form Accounts receivable selected. Credit limits are only checked for certain customers.

To check credit limits for the following documents, you need to specify additional settings.

documentAdditional shot
Free text invoiceYou can set parameters for the credit limit check on the Creditworthiness tab of the Customer parameters form.
Order (entered manually)You can set parameters for the credit limit check on the Creditworthiness tab of the Sales order form.
Order (received electronically)In the Debiots form in the AIF area, select credit limit for sales order.

Where do I configure the way a customer's remaining credit is calculated?

You can configure Dynamics 365 to calculate a customer's remaining credit using one of the following methods:

  • Compare the credit limit with the customer balance

  • Compare the credit limit against the customer and delivery note amounts.

  • Compare the credit limit against the customer balance and all activities with open items. This includes delivery note amounts and order amounts.

Use the form Accounts receivable parametersto specify the information to compare. You must be a member of the System Administrator (-SYSADMIN-) security role to make the changes on this form. Select in the field Credit limit type whether the automatic checking of credit limits is carried out and which booking information is to be included when the credit limit is checked. The following options are available:

  • No - Do not check credit limits. You can override this option for a specific customer by checking the box Mandatory credit limit in the form Customers choose. When you do this, the credit limit is checked against the customer balance.

  • balance - The customer balance is checked by comparing it with the credit limit.

  • Balance + delivery note or product receipt - The credit limit is checked by comparing it with the customer balance and deliveries.

  • Balance + everything - The credit limit is checked by comparing it with the customer balance, deliveries and open orders.

Where is information about a customer's remaining credit used?

Information about a customer's balance and remaining credit is calculated and stored when you take a due date snapshot, and it appears on the form Collections displayed. The amounts in the form Collections may not include all posting activity until a new due snapshot is taken. For more information, see Collections and Credit in Accounts Receivable Parameters.

Depending on the documents that have been selected, information about a customer's balances and remaining credit is calculated when orders, delivery notes, and customer invoices are updated. If the amount of the document you are working on would cause the credit limit to be exceeded, a message will appear.

Where do I specify whether identification is required in order to be granted credit to a customer and also the credit limit that requires identification?

Use the form Accounts receivable parametersto indicate whether identification is required and the credit limit for which identification is required. You must be a member of the System Administrator (-SYSADMIN-) security role to make the changes on this form.

fielddescription
Identification required for creditSelect the type of ID that must be entered for customers to whom the legal entity lends. The option with which you select in this field determines when and what type of information is required in the authority identification fields in the "Debitor" form :, - No ID is issued by an authority, regardless of the customer's credit limit. Required Yes - A government-issued license number or government-issued ID is required if the customer's credit limit is greater than or equal to zero. Lower Limit - A government-issued license number or ID is required if the customer's credit limit is greater than or equal to the limit you enter in the Limit field on this form.
limitEnter the credit limit above which a government-issued license number or ID card is required for customers. For example, you can enter 2000 to specify that an ID number, such as B. an identity card number must be entered for customers with a credit limit of 2,000 or higher. This field is only available if you selected the Lower limit option in the ID number required for credit field.

Where do I indicate if I see a warning or an error when the credit limit is exceeded?

Use the form Debtor parameters, to indicate whether a warning or an error is displayed when the credit limit is exceeded. This warning or error is displayed when a user is entering or posting information, or it is included in a log when the documents are being processed by an electronic service. You must be a member of the System Administrator (-SYSADMIN-) security role to make the changes on this form.

fielddescription
Message when the credit limit is exceeded (in the credit rating area)Choose how users will see messages that they have exceeded their credit limit. Select from the following options: Error - An error message is displayed. This usually ends the current operation and the conflict must be resolved before the process can continue. Warning - A warning message will be displayed, but the process can continue.
Message when the credit limit is exceeded (in the AIF area)Select how messages about exceeding the credit limit are delivered in a log. Choose from the following options: Error - An error message will appear on the form and the document will not be processed until the error is corrected. Warning - A warning message is displayed in the Exceptions form, but the process can continue.

How do I specify the credit limit amount for a specific customer?

Use the form Customersto enter the credit limit amount for a specific customer. You must be a member of a security role assigned the Manage Customer Master Data (CustCustomersMaintain) task to make changes to this form.

  1. click on Accounts receivable > Generally > Customers > All customers. Double-click a customer account.

  2. In the Accounts receivable Form in the activity area, click To edit.

  3. Enter the credit amount in the field Credit limit a. This value must be greater than zero (0) and is used as the amount for the credit limit.

  4. If required, enter a driver's license number or other government identification in the R field Government identifier a.

Note

For more information, see Customer parameters, usually a credit limit type is chosen. However, if the credit limit type is too No is set, you need to check the box Mandatory credit limit in the form Customers Also select to check the customer's credit limit against the customer's balance. For more information on credit limit types, see "For which documents and processes can I check credit limits?" in this topic. in this topic.

How do I manually check credit limits for orders?

Sometimes you can manually check a customer's credit limit. For example, you can manually check a customer's credit limit before you start entering an order. You can use the form Sales order to manually check credit limits. You must be a member of a security role assigned the SalesOrderMaintain task to make changes to this form.

  1. Click on Area Page Nodes: sales and marketing > Together > assignments > All orders. Double click on an order.

  2. In the activity area, click the tab Sales order in the group Manage on Check credit limit.